The Washington state's Attorney General and Chicago have sued Uber for allegedly violating state's data breach notification law.
The Washington Attorney GeneralBob Fergusonsued the ride-hailing company on Tuesday for over millions of dollars.
Uberhad revealed last week about a data breach that it sufferedin October2016.The data breach had reportedly affected about 57 million driver and rider accounts.
Uber waited for more than a year to disclose the data breach.
The delay not only failed to protect the consumer's personal information, it also violated city and state laws.
The state has demanded apenalty of up to $2000 for each person whose data was exposed.
The penalty this way will rise up to "millions of dollars".
The companies are supposed to notify the Attorney General within 45 days if a breach affects 500 or more Washington residents.
However Uber, paid the hackers to keep them quite.
The hackers demanded payment from Uber in return forstolen data. Uber paid an amount of $100,000 to ensure complete removal of the data.